Schwab Clients Embrace ETFs

Total ETF Assets at Schwab Exceed $100 Billion

Tuesday, November 9, 2010 6:00 am PST



Public Company Information:

"Schwab ETFs have had significant traction this first year"

SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab announced today that exchange-traded fund (ETF) assets held by its individual investor and independent advisor clients have exceeded $100 billion1. This significant milestone was achieved in part because of the early success of Schwab’s own ETF products. Assets under management in Charles Schwab Investment Management, Inc. (CSIM) Schwab ETFs™ now exceed $2 billion2, and Schwab Managed Portfolios™ Exchange-Traded Funds (SMP-ETFs), which debuted in January through Charles Schwab Investment Advisory Inc., has garnered $1.7 billion to-date3.

“ETFs have skyrocketed in popularity, and the success of our ETF program shows that Schwab is the destination for investors seeking ETFs,” said Peter Crawford, senior vice president of Charles Schwab & Co., Inc. “Whether they are long-term buy and hold investors who are looking for great value in terms of operating expenses, or more active investors whose focus is low-cost trades, we are the place for investors seeking ETFs.”

At its “ETF HQ”, Schwab provides a full range of resources to help individuals and advisors. The Schwab ETF Learning Center offers educational materials and insights from Schwab experts in the form of FAQs, articles and videos. The content ranges from the basics of ETFs and how they fit into a portfolio to sophisticated trading strategies. Schwab’s ETF resources also include an array of tools to help investors choose ETFs that may best fit their investment needs, including a robust ETF Screener to search for ETFs that offer exposure to various markets, industries and sectors; a comparison tool to view side-by-side snapshots of multiple ETFs; and research and ratings from third parties.

The first Schwab ETFs were launched just one year ago in a bold move that allowed Schwab clients to trade the ETF shares with no commissions online through a Schwab account*. With some of the lowest OERs in their categories, the now 11 Schwab ETFs have experienced widespread adoption among Schwab individual investor clients and advisors who custody with Schwab. Schwab ETFs follow broad indexes of domestic stocks, international stocks, and bonds, which can make them excellent building blocks for a well-diversified portfolio. In addition, Schwab ETFs are marginable immediately at Schwab and have no required minimum holding period.

"Schwab ETFs have had significant traction this first year," said Crawford. "Our clients find these low-cost indexed vehicles enormously appealing in general, and as some of the lowest-cost products in each of their categories, the Schwab ETFs are especially attractive. Our straightforward approach to pricing and focus on core categories have really helped Schwab ETFs take off, as evidenced by them crossing the $2B threshold one year to the day since they debuted.”

Schwab’s comprehensive offering to investors also includes the new SMP-ETF product launched in January. This product offers diversification across multiple asset and sub-asset classes, sophisticated management and monitoring and low operating costs.

“Our clients can expect to continue to see more leadership and innovation from us in this area. We’ll continue to build on this success and remain the place for individual investors who want to take advantage of the benefits of ETF investing,” emphasized Crawford.

Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.

Some specialized exchange-traded funds can be subject to additional market risks. Investment returns will fluctuate and are subject to market volatility, such that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF.

*Restrictions Apply: Online trades of Schwab ETFs are commission-free at Charles Schwab & Co., Inc, while trades of 3rd party ETFs are subject to commissions. Broker-assisted and Automated Phone trades are subject to service charges. Minimum $1,000 deposit is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details. All ETFs are subject to management fees and expenses.

Diversification may not protect against investment loss.

Schwab ETFs distributed by SEI Investments Distribution Co (SIDCO). SIDCO is not affiliated with The Charles Schwab Corporation or any of its affiliates.

Charles Schwab Investment Advisory, Inc. (“CSIA”) is an affiliate of Charles Schwab & Co., Inc. (“Schwab”).

Charles Schwab Investment Management, Inc. and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

About Charles Schwab Investment Management

Founded in 1989, Charles Schwab Investment Management, Inc., a subsidiary of the Charles Schwab Corporation, is one of the nation's largest asset management companies with more than $186 billion in assets under management as of September 30, 2010. It is among the country's largest money market fund managers and is the third-largest provider of retail index funds. In addition to managing Schwab proprietary funds -- Schwab Funds® and Schwab ETFs™ -- CSIM provides oversight for the institutional-style, sub-advised Laudus Fund family. CSIM currently manages more than 70 mutual funds, including indexed and actively-managed funds, in addition to four separate account model portfolios, and 11 ETFs.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 7.9 million client brokerage accounts, 1.5 million corporate retirement plan participants, 665,000 banking accounts, and $1.47 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at and (1110-7205)

1 As of October 5, 2010

2 As of November 2, 2010

3 As of October 29, 2010


Charles Schwab
Alison Wertheim, 415-667-0475
Melissa Murphy, 202-262-4989

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